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Management Side
European review of Dow-DuPont merger resumes, again

BRUSSELS (From news reports) -- The Dow Chemical Co. and DuPont Co. merger talk is back on the table. The European Commission said it received missing information it had requested as antitrust regulators review the $130 billion deal.

The new deadline for the Commission to take a decision is Feb. 28, 2017. It was the second time the EU had halted its review to request missing data from both companies. A similar pause took place in September.

Dow and DuPont are two of the nation's six biggest farm chemical and seed companies. The EU, along with other U.S. agencies reviewing the merger, has cited a concern about the lack of competition that could result, notably in the agriculture industry. Multiple news reports indicate U.S. state attorneys general in seven states, including California, have joined the probe. The reports cite unnamed sources.

Company officials had hoped to see the deal closed by the end of this year.

Dow Chairman and CEO Andrew Liveris said in late October that discussions are "going a little longer than we had hoped," but that 10 jurisdictions had approved the merger and Dow is confident a deal will be reached by the first quarter of 2017.

"A few months shouldn't impact the value creation of a $130 billion deal," Liveris said during a conference call reporting Dow's third quarter earnings on Oct. 27.

"Dow and DuPont have always expected a thorough review," a Dow Chemical spokesperson previously said in a statement to the Daily News. "Dow and DuPont remain focused on closing the transaction and continue to work constructively with the European Commission and regulatory agencies in all relevant jurisdictions to secure the necessary approvals."

The merger would result in a combined company known as DowDuPont, which would then spin off into three separate, independent businesses within 18 to 24 months: Material Sciences, to stay headquartered in Midland, and Agriculture and Specialty Products, to be based in Wilmington, Delaware, where DuPont is currently headquartered.

The companies say the merger will reduce their annual spending by $3 billion, the Associated Press reported last week.

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